Western Australia has immense potential to advance in the global green steelmaking sector, according to a report led by the Minerals Research Institute of Western Australia (MRIWA).
The ‘Green Steel Opportunity Report’ outlines the pathways for WA iron ore to be used to reduce emissions in steelmaking and advance towards the 2050 net zero goals.
Significantly, the green steel report takes into account the size, scale and capital requirements necessary to develop the infrastructure for emissions-reducing pathways.
WA's access to low-cost clean energy resources opens the possibility for the state to supply steelmakers with high-grade iron feedstock products like green iron in the form of hot briquetted iron (HBI).
What's more, the report also highlights that the international demand for WA's direct shipping iron ore material is expected to persist and the advent of green steel will only enhance the demand.
Five pathways to green steel using WA’s iron ore have been modelled to accelerate 2050 net zero goals. These pathways offer an avenue to significantly lower global steel CO2 emissions. To find out more visit: https://t.co/WGDdoTwSDE pic.twitter.com/xUIilW3yCm— MRIWA (@MinResWA) June 20, 2023
Moving up green steel value chain
Western Australia Premier Roger Cook said: “Our State's abundant renewable energy resources alongside our world-leading iron ore industry puts WA front and centre in the global push towards green steel.
"Moving up the green steel value chain will diversify our economy and create more local jobs right across the State.
"This report delivers on an important election commitment and will help to position Western Australia as an investment destination for low-emissions steel opportunities."
Reduce emissions by 65%
As advancements in green hydrogen technology continue to emerge and more renewable energy infrastructure is established, the state's access to natural gas and renewable energy resources is identified in the report as crucial to supporting reductions in steelmaking emissions.
The MRIWA's report aligns with several State Government initiatives, including Diversify WA, the Western Australian Climate Policy, the Energy Transformation Strategy and the Sectoral Emissions Reduction Strategy.
Mines and Petroleum Minister Bill Johnston further underscored the economic benefits, stating that "a small scale 4.8 million tonnes per annum vertically integrated magnetite HBI plant in the Pilbara could generate taxation benefits in the order of $31.7 billion to Australians during construction and operations through to 2050."
He added that the plant would potentially increase employment in the Western Australian iron ore sector by 1,700 full-time employees.
Johnston also emphasised the potential to reduce emissions by 65% by utilising natural gas in iron making, an approach that is currently technically feasible.
He concluded by acknowledging the rising interest in Western Australia by the steel industry, given the state's access to iron ore resources and renewable energy options.